### 2. The significance of a sound material-cycle society

## (1) Making possible sustainable development in Japan and the world

Following the slowing of the global economy in the latter half of fiscal 2008, prices of many circulative resources involving scrap iron, used papers, and PET bottle flakes fell sharply in the short term, and it is necessary to monitor this situation in the future (Figure 1-1: A Movement of the Prices of Circulative Resources). Because of expanding demand however, there will continue to be pressure to raise the prices of resources and energy in the long run, and this trend has affected circulative resources. Extraction of resources is expanding on a global basis, especially following a period of vigorous economic growth and population increase centering on Asia, and there is a considerable and increasing concern about the dependable supply of resources. (Figure 1-2: Ratio of Expected Accumulated Total Production Amounts Until Year 2015 or 2050 in Relation to the Proved Extractable Reserve Amounts (an estimate)).

Due to its scarce natural resources, Japan has taken an approach to economic growth which is not over reliant on natural resources but rather encourages more efficient use of them, or in other words, has taken a decoupling policy for economic growth and natural resources input (a situation where the increasing rate of natural resources input is lower than that of economic growth), and this has enabled our country to maintain and strengthen her international competitiveness. Considering the present situation, where the waste disposal issue is escalating globally and concerns for the stable supply of natural resources are increasing with the international economic growth and population increase centered on Asia, there is now a pressing issue internationally to promote more aggressively our advanced approach for a sound material-cycle society involving promotion of the 3Rs movement to which Japan has committed.

Figure 1-1 A Movement of the Prices of Circulative Resources

Source: Created by the Ministry of the Environment, based on data from the Japan Ferrous Raw Materials Association, Waste PET Bottles Recycling Council, and Paper Recycling Promotion Center

## (2) Reduction of greenhouse gas and disposal costs

Various greenhouse gases are generated along with the processing of waste disposal. For instance, when waste disposal is incinerated, carbon dioxide, methane, and nitrous oxide gases are generated. Moreover, methane will be generated in the final disposal site where organic wastes are dumped. The emission amount of greenhouse gases caused by incineration and dumping is around 45 million tons a year (carbon dioxide equivalent), and it corresponds to 3.3% of the total amount of greenhouse gas of our country. Moreover, it should be noted that carbon dioxide gas will be discharged by use of fossil fuel in the collection and transportation of waste disposal: In addition, garbage processing business expenditure has reached about 1.9 trillion yen a year.

Reduction of the amount of waste disposal leads to the reduction of greenhouse gas and disposal costs. For example, in Year 2005, Yokohama City increased the classification numbers of waste disposal from 5 segregations and 7 items to 10 segregations and 15 items, and also decided to recycle plastic containers and packaging materials, in addition to waste paper instead of incinerating them. As a result, compared to fiscal 2001 municipal waste was reduced by 34% in fiscal 2005. This also led to the reduction of 750 thousand tons of carbon-dioxide emission as well as an enormous reduction in costs, including 110 billion yen saved by the cancellation of reconstruction plans for two incineration factories in the city, and a three billion yen reduction in the annual operating expenses of factories in the city.

Figure 1-2 Ratio of Expected Accumulated Total Production Amounts Until Year 2015 or 2050 in Relation to the Proved Extractable Reserve Amounts (an estimate)

Source: Created by the Ministry of the Environment, based on data from Mineral Commodities Summaries, Metal Mining Data Book, and BP Statistical Review of World Energy.